AMD Stock Analysis: Up 12.66% Increase Since Our Bullish Article

AMD Stock Analysis

I Know First wrote an article about Advanced Micro Devices with a bullish algorithmic forecast from June 10th, 2015. In the less than two weeks since the article was published, the stock price has increased 12.66%in accordance with the bullish fundamental and algorithmic forecast.

Advanced Micro Devices, Inc. (NASDAQ: AMD) is a global semiconductor company. Its stock price has fallen roughly 43% in the last year, and the company looked like it was facing some daunting challenges. The declining PC market, from which the company gets most of its revenue, has been a burden in recent years, and the company has lacked a focus. It had become clear to everyone that the company’s prior strategy was not sustainable, as the company has not been profitable since 2011. Now, the company is trimming its operating costs while sharpening its focus in specific markets.

After the drop of the stock over the past year, we see that AMD stock has increased since May 31st – which the one week forecast from that precise date predicted. AMD had a signal strength of 11.09 and a predictability indicator of 0.36 for this forecast. In the following week, the stock price increased 2.19% as foreseen by the algorithm. Moreover, in May the company reported $0.24 earnings per share (EPS) which is higher than the $0.16 EPS consensus. Also, for the first quarter, the revenue of the firm came to $208.05 million which is also greater than the consensus.

According to the algorithm, the increase in AMD stock over the past three weeks is most certainly not a short blip in the overall decline in AMD and investors should remain bullish in the long run too. The three month algorithmic forecast from June 1oth has a signal strength of 54.37 and a predictability indicator of 0.44, whilst the yearly forecast has a signal strength of 62.92 and a predictability indicator of 0.47. If positive performances by AMD in recent weeks are an indication of the future, then the algorithm is destined to be spot on with it’s AMD predictions.

By narrowing its focus, the company can now spend its money on the markets where it can grow market share and draw substantial profits from in the future. The currently undervalued AMD had tremendous upside potential if the current reformations and restructuring of the company are carried out effectively and efficiently. Not withstanding, the next earnings report will still be uninspiring, but that is already factored into the stock price. Starting in the second half of the year, the stock should start rising as the company returns to profitability increases its market share in high-growth areas

Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.

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